SEC Filings

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of goodwill and intangibles assets and losses or gains recognized on the
disposal of assets. Management expects depreciation and amortization to
increase as a result of the purchase accounting adjustments arising in
connection with the Time Warner Acquisition.
The table below sets forth for the periods indicated certain data regarding
expenses expressed as a percentage of total revenues:

The Systems have not had any material acquisitions during these periods and
thus the growth since 1995 represents internal growth resulting from
subscriber additions, rate increases and additional services purchased by
subscribers and advertisers.
Results of Operations
Year Ended December 31, 1998 Compared with Year Ended December 31, 1997
Prior to the acquisition of the Time Warner Systems from Time Warner on
April 9, 1998, Group had no operations. Consequently, the results of
operations of the company for the year ended December 31, 1998 include
operating results for the period April 9, 1998 to December 31, 1998. In order
to facilitate discussion of the Results of Operations for the year ended
December 31, 1998 compared to the year ended December 31, 1997, the 1998
results of the Company have been annualized as indicated below:

(1) Computed by multiplying December 31, 1998 as reported items by 137% (365
days / 267 days (number of days in period April 9, 1998 to December 31,
1998), except for Corporate Franchise Taxes not subject to annualization and
other immaterial adjustments.
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